by Brandon Reiter
Some economists are pointing to Beyoncé’s recent concert in Stockholm as a reason for Sweden’s high inflation. Is this really true?
The theory looks at the subsequent surge in hotel prices and other costs paid by fans. Her ongoing Renaissance World Tour has attracted consumers from across the globe, leading to increased spending on accommodations and restaurants. As a result, Sweden’s inflation rate only decreased by 0.2% in May, which was lower than expected.
While the influx of foreign Beyoncé fans to Sweden, a country with a population similar to North Carolina, contributed to the inflationary pressure, it is realistically just a blip on the measure, and is not the reason of any prolonged inflation the country is experiencing.
Other factors such as rising food prices, pets, and package holidays were also cited as causes of inflation. In fact, the high entertainment and hotel spending in May did not deviate significantly from historical trends. Sweden, which chose not to adopt the euro, has faced inflation and higher household costs (like most of the world) due to disruptions in the wholesale energy market caused by Russia’s invasion of Ukraine. The country fared relatively well during the COVID-19 pandemic compared to its neighbors.
While Beyonce’s tour may cause a temporary surge in pricing and consumer spending in the small country, it is definitely not the reason for high inflation, even though it may temporarily slowdown deflation when comparing May to April.